Crypto Traders have become all too familiar over the years with extreme gas prices. Gas is the name given to fees that must be paid on blockchain networks in order to complete a transaction. They are directly correlated with traffic on the network, when traffic is high, so are gas fees.
Famously, Ethereum fees grew to outrageous levels at the height of the NFT boom. With the high price of ETH and the popularity of its network, transaction costs were routinely above the $20 mark, but could easily exceed hundreds of dollars. If you were buying a $5,000 NFT, this was a minor inconvenience, but if you were flipping $100 NFTs, this could seriously eat into your bottom line.
ETH has largely remedied this problem by moving from a proof of work (PoW) consensus mechanism to proof of stake (PoS) in a transformation known as “The Merge.” This has dramatically reduced gas fees on the network, however, fees still can be as high as $10 or $20, meaning small or micro-transactions do not make sense much of the time.
Within the ecosystem of Seasonal Tokens, a crypto project made of four individual tokens (SPRING, SUMMER, AUTUMN, WINTER), some traders are making many transactions a day. The tokens are designed to rise and fall in relation to one another through the influence of a mechanism known in the Bitcoin (CRYPTO: BTC) community as “the halving” where the production of new tokens is cut in half, effectively driving up the value of BTC.
Following a set schedule, the tokens are successfully halved, one after another over an extended period of time. This causes the tokens to successively rise in value relative to one another. But as these macro changes happen over time, small movements happen on a daily basis. Traders looking to take advantage of these movements may be trading many times a day, and sometimes with token amounts with values of a few dollars. In these cases, ETH transaction fees are still too high.
To ameliorate this, Seasonal Tokens has created a bridge between ETH and MATIC that allows these transactions to use the Polygon network. Polygon gas fees are so small they are nominal. Traders can now easily make transactions without devaluing the trade through excessive gas fees. This should make the ecosystem even more efficient.
If you are interested in learning more, check out Seasonal Tokens.
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